Canadian Pacific (TSX: CP) (NYSE: CP) today unveiled the next generation of grain transportation at the G3 Pasqua elevator near Moose Jaw, Sask. The 8,500-foot High Efficiency Product (HEP) train features new, and highly efficient, Canadian-made hopper cars, and can move approximately 44 percent more grain than the prior generation of grain train.
"A state-of-the-art loop track terminal like this is the perfect backdrop for launching our first HEP train and bringing in a new, more efficient era of moving Canada's grain to market," said Joan Hardy, CP's Vice-President Sales and Marketing – Grain and Fertilizers. "As CP continues to take delivery of new railcars, and elevator operators expand their facilities to handle 8,500-foot trains, this HEP train will become the new gold standard – driving further efficiencies for farmers, shippers and the entire grain supply chain."
Sharing the podium with CP at the landmark event were Mark Dyck, G3's Senior Director Logistics, and the Honourable Lori Carr, Saskatchewan Minister for Highways and Infrastructure.G3 constructed its state-of-the-art Pasqua terminal loop track to handle the 8,500-foot-long HEP trains. The fast loading loop track means CP can keep locomotives attached to the train during loading, and those same locomotives are in place to launch the train once loading is complete.
"CP's new high-capacity hopper cars add an important link in the grain supply chain," said G3 CEO Don Chapman. "Combined with fast, efficient loading on G3 loop track systems, these trains will accelerate the flow of grain to market, to the benefit of all our customers. G3 is proud to work in close collaboration with CP."
The new hopper cars that make up today's train feature a capacity 10 percent greater by weight than the older-model Government of Canada cars, and 15 percent more volume. The cars carry this extra product on a frame 5 percent shorter than the older cars, meaning more cars can fit into a train of the same length. The cars are part of a
half-billion-dollar investment CP is making to upgrade its fleet to better and more efficiently serve farmers and the Canadian economy. By the end of this year, CP will have approximately 500 new hopper cars in service, and that number will grow to 1,000 by spring 2019. Over the next four years, CP plans to purchase a total of 5,900 new hopper cars.
"We are pleased to see CP unveil their high-capacity hopper cars," Lori Carr, Saskatchewan's Minister of Highways and Infrastructure said. "CP's investment along with G3's investment in a long loop track will help our producers get their product to market more efficiently and in greater volume."
CP moved 2.64 million metric tonnes (MMT) of Canadian grain and grain products in October making it CP's biggest month ever for moving Canadian grain, breaking the record from September 2017. CP also
announced earlier today that it has broken its previous record for carloads of Western Canadian grain and grain products shipped to the Port of Vancouver in a single month.
"The future of the grain supply chain is bright," said Hardy. "With continued collaboration, a commitment to innovation, and strategic capital investment in key markets, like Saskatchewan, the grain supply chain is well positioned for continued success."
CP's 8,500-foot High Efficiency Product (HEP) train loads at G3's Pasqua elevator.
Above from left to right: Murray Hamilton, CP Assistant Vice-President Sales and Marketing, Grain and Biofuels, Trent Brister, General Manager G3 Terminal - Pasqua, Hon. Lori Carr, Saskatchewan Minster of Highways and Infrastructure, Joan Hardy, CP Vice-President Sales and Marketing, Grain and Fertilizers, Mark Dyck, Senior Director Logistics, G3, Jason Hanstock, Senior Regional Manager, G3
This news release contains certain forward-looking information within the meaning of applicable securities laws relating, but not limited, to CP's plans and expectations with respect to transporting grain in the 2018/2019 crop year, capital investment, including with respect to CP's locomotive and grain hopper fleet, the implementation and results of CP's sales and marketing, operations and technology initiatives (including hiring and training new employees and CP's plans to purchase new hopper cars over the next four years) as well as the Company's operations, priorities and plans, anticipated performance, business prospects, programs and strategies. This forward-looking information also includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "plan", "will", "outlook", "should" or similar words suggesting future outcomes. Undue reliance should not be placed on forward-looking information as actual results may differ materially from the forward-looking information. Forward-looking information is not a guarantee of future performance. By its nature, CP's forward-looking information involves numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in commodity prices; uncertainty surrounding timing and volumes of commodities being shipped via CP; inflation; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of investigations, proceedings or other types of claims and litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; and various events that could disrupt operations, including severe weather, droughts, floods, avalanches and earthquakes as well as security threats and governmental response to them, and technological changes. The foregoing list of factors is not exhaustive. These and other factors are detailed from time to time in reports filed by CP with securities regulators in Canada and the United States. Reference should be made to "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Information" in CP's annual and interim reports on Form 10-K and 10-Q.
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